Account Reconciliation Manager – An Introduction

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April 10th, 2012


This blog post is part of an Oracle Hyperion 11.1.2.2 series covering application highlights as well as a deeper look into different aspects of the new release.

A business starts its day with business activity that creates transactions.  These are commonly recorded at the transactional level as a Debit and Credit in their respective General Ledger. As time goes on, these transactions are grouped by activity and by time, usually a monthly cycle.  Then this business activity is consolidated with other business activity and business units for total monthly activity.  Once consolidated, these results are reported in the three common required reports, the Balance Sheet, the Income Statement, and the Cash Flow Statement.  The last remaining duty of the company accountants is to reconcile all the data to prove its accuracy.  This activity of reconciling the data is a fundamental requirement to support its financial statements and support their respective audits by both internal and external auditors.

Given the size of many corporations today, and the large volume of activity, many financial systems are used to facilitate the management of all this data.  There are numerous transactions systems that feed into common General Ledger systems such as JD Edwards, PeopleSoft, and SAP.  These GL systems then feed into a consolidation tool such as Hyperion Enterprise or Hyperion Financial Management.  From these consolidation tools, the data is used to populate the respective financial reports using such tools as Financial Reporting.

Reconciling the reports, the data, has mostly been a manual process by the use of spreadsheets.  While there are a few products in the marketplace to reconcile large data files and there are a few small vendors for reconciling, nothing in the Hyperion Suite of products has been available to facilitate this process.

Until now.

The recently released Oracle Hyperion 11.1.2.2 includes a new tool—Account Reconciliation Manger (ARM)—as part of their Close Manager Suite.  This tool reconciles the final data, with the source data, down to the transactional level.  The tool also facilitates the use of multiple currencies. Even better, ARM eases the management of balances in larger accounts. The usefulness of this becomes evident with larger accrual accounts or inter-company accounts where traditionally the balances and their origins become so comingled that a true outstanding balance is difficult to trace.

This is the first post in a multi-part series about ARM. Upcoming blog posts will review the product features, setup, and will discuss how companies can leverage this tool to streamline the reconciliation process.

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